The hiring rule for the perfect competitor in the labor market is to choose that amount of labor for which the wage rate is exactly equal to
A. marginal revenue from the sale of one more unit of output.
B. MC.
C. the cost of capital.
D. the value of the marginal product of labor, VMPL.
Answer: D
You might also like to view...
The law of demand states that, other things equal, when the price of a good rises, the quantity demanded of the good rises, and when the price falls, the quantity demanded falls
a. True b. False Indicate whether the statement is true or false
Refer to the figure below. When the price is equal to 8, the price elasticity of demand for the demand curve D1 is ________ and for D2 the price elasticity of demand is ________. 
A. 1; 4 B. 4; 1 C. 2; 4 D. 4; 4
Suppose a new law requires all piercing studios to pass tougher licensing tests and to begin using more costly sterilization methods. Other things constant, this law would cause
a. an increase in the supply of piercings and a lower price for piercings. b. an increase in the supply of piercings and a higher price for piercings. c. a decrease in the supply of piercings and a higher price for piercings. d. a decrease in the supply of piercings and a lower price for piercings.
What is the real exchange rate?
a. It is the ratio of the domestic cost of a foreign basket of products compared to the cost of the same domestic basket of products. b. It is the exchange rate minus the rate of domestic inflation. c. It is the exchange rate plus the rate of domestic inflation. d. It is the original exchange rate that was in effect when the nations were on a gold standard.